City & County of San FranciscoOffice of Small Business PresentsSMALLBUSINESSBULLETIN

O C T O B E R , 2 0 1 3

Dear Reader,

As our nation embarks on the path toward health care reform, small business owners must stay informed about the changes that will affect those who have employees. Regardless of whether or not you provide health coverage to your employees, or how many hours they work, you must provide them a mandatory notice about the options available to them. Click here for details and for other information and resources regarding the Affordable Care Act.

October 1, 2013 is the first time that restaurants and food establishments must adhere to the Checkout Bag Ordinance. Food establishments must now charge customers 10-cents for approved compostable bags for take-out and delivery orders. Click here for details.

By now, you've probably seen the national "Shop Small" and "Small Business Saturday" campaign on TV and across the Internet. The Office of Small Business along with several partner organizations is once again promoting these efforts to encourage consumers to support local small businesses. Look out for "Shop Small" light pole banners throughout the City.

• ﻿Healthcare Reform Update: Mandatory Employer Notices are Ready – Are You?The Department of Labor recently published guidance regarding the notices employers must give to their employees concerning their coverage options under Healthcare Reform. These notices must be provided to ALL employees (regardless of how many hours they work, whether they are on Medicare/Medi-Cal, etc.) by October 1, 2013.

There is one notice for those employers who offer group health insurance to some or all of its employees and a different notice for employers who do not offer group health insurance. You must provide letters at the time of hire for employees hired between 10/1/13 – 12/31/13 and within 14 days of the employee’s start date beginning in 2014.

The U.S. Department of Labor has two model notices to help employers comply:

The model notices are also available in Spanish and MS Word format at http://www.dol.gov/ebsa/healthreform/. Employers may use one of these models, as applicable, or a modified version. Some insurance companies have already begun contacting businesses to provide these notifications to their employees. If you already carry health insurance for your employees, check with your agent to see what type of services they may provide to help you meet the Affordable Care Act requirements.

Through our recent Small Business Bulletins, the Office of Small Business has been keeping San Francisco employers informed of the requirements of the Affordable Care Act and various resources that are available to help guide you through this transition period. October 1, 2013 is the official start date where small businesses with less than 50 employees can pool together to purchase health care through Covered California, the state's health exchange agency. Click on the links for more details about the Affordable Care Act, Covered California, small business tax credits, and mandatory employer notifications.

Under the leadership of Mayor Lee and Trent Rhorer, Director of the San Francisco Human Services Agency, San Francisco is a national leader in bringing affordable health care access to its residents. Residents seeking coverage can apply through multiple channels beginning October 1, 2013:

Individuals who do not qualify for Covered California or Medi-Cal will continue to be eligible for Healthy San Francisco, a local health access plan, but not insurance, administered by the San Francisco Department of Public Health.

• SFO Recognized for Small Business Advocacy and PartnershipThe San Francisco International Airport (SFO) was recognized in September by the Federal Aviation Administration for its efforts to expand construction, services, and concessions contracting opportunities for small businesses. Since 1982, SFO has had a small business outreach program, which has blossomed to the point where today over 30% of construction and services spending, and more than 50% of concessions opportunities annually are directed to local and disadvantaged small business enterprises. These figures demonstrate SFO’s ongoing commitment to small businesses.

• Mandatory Soft Story Retrofit Ordinance and Financing WorkshopLast April, on the anniversary of the 1906 San Francisco Earthquake, Mayor Ed Lee signed into law the Mandatory Soft Story Retrofit Ordinance. This legislation created a mandatory requirement for property owners of multi-unit “soft story” buildings to evaluate and retrofit them for enhanced seismic safety. Buildings subject to this requirement are wood-framed, contain five or more residential units, have two or more stories over a "soft" or "weak" story, and were permitted for construction prior to January 1, 1978. If you own a building meeting these criteria, you must evaluate and retrofit the building to meet certain new safety standards.

A Soft Story Financing Workshop will be held on Wednesday, October 23 from 6-8 PM at Fort Mason to help property owners understand how they can pay for these improvements. While property owners will soon receive a notice specifying their individual deadlines for compliance, which range from four to seven years from now, it is never too early to start thinking about financing options.

The Soft Story Financing Workshop is co-hosted by the City’s Earthquake Safety Implementation Program (ESIP) as well as the San Francisco Apartment Association (SFAA). Several private lenders will attend, and there will also be information on the City’s financing option.

• PUC Issues Rules to Legalize Ride-Sharing Businesses
The California Public Utilities Commission (PUC) issued new rules to regulate so-called “ride-sharing” companies at its meeting on September 19. The PUC’s rulemaking is seen as a major step forward in adapting 20th century laws to conform to 21st century technology. Any rideshare business, now classified by the PUC as a “Transportation Network Company” (TNC), must obtain a license before operating. Licensed TNCs will be allowed to provide passenger transportation pre-arranged through an online-enabled application or platform, but will be prohibited from accepting street hails. TNC license applications will be available on the PUC’s website within 45 days.

Most of the new requirements apply to TNC owners, not individual vehicle operators. Drivers, however, must undergo a criminal background check, quarterly driving record checks, show proof of both personal and commercial vehicle insurance, and complete a driver training program. Additionally, participating vehicles must undergo a safety inspection either by the TNC operator or a facility licensed by the California Bureau of Automotive Repair.

The PUC’s action is expected to expand the ride-sharing marketplace, which has been limited to a few major players given uncertainty surrounding the concept’s legality. Small business owners considering entry into this sector as a TNC operator or individual operator should contact the PUC’s Passenger Section at (800) 894-9444 for more information.

• Small Businesses Can Qualify for High Incentives for Energy Efficiency Upgrades
Driven by rising energy costs, many small business owners in San Francisco are taking steps to reduce their electricity costs. Lighting and refrigeration account for high energy costs, and energy efficiency is one of the cheapest and most effective ways to cut those costs. Through the SF Energy Watch program, SF Environment’s bilingual staff helps small businesses – from retail stores, restaurants, art galleries, and more – identify these opportunities at no cost and arranges for licensed preferred contractors to complete upgrades at greatly reduced cost. The Program’s expert technical assistance and turn-key services are valuable to small business owners with limited time to examine all the technologies on the market today.

“SF Energy Watch enabled us to immediately change our entire lighting, saved us a ton of money, and saved important resources. For us, the biggest thing about the money we saved was that we could put those funds into our inventory. The whole thing was so easy and so professional that I wondered why every local business does not make use of this program” said Ken Shelf, Co-Owner of Succulence. In general, energy efficient improvements bring comfort, reduce utility bills, and promote sustainable practices. It is a win-win situation for small business owners, employees, and customers!

Schedule a complimentary energy assessment and learn how much you could save in your energy bill. Contact the SF Energy Watch hotline at 415-355-3769 or email at energywatch@sfenvironment.org. To learn more, visit www.SFEnergyWatch.org. This program is a partnership between the City of San Francisco and Pacific Gas and Electric.

• ﻿Effective 10/1/13: Food Establishments Must Comply with Checkout Bag OrdinanceSan Francisco’s Checkout Bag Ordinance, in effect since 10/1/2012, prohibits retail businesses from providing single-use plastic checkout bags and requires businesses to charge customers 10-cents for approved compostable bags. Food establishments were exempted from the ordinance during its first year in effect, but as of October 1 must comply for takeout and delivery orders. Bags containing loose bulk foods or unwrapped baked goods, and those used to prevent contamination/spillage of food or to transport leftover food from sit down dining, are still exempt from the charge. Businesses must show the bag charge separately on customer receipts, and may keep the charge to offset bag purchase expenses. Bag charges are not subject to sales tax.

The Department of the Environment has an informative website that outlines key elements of the Checkout Bag Ordinance and also provides a list of vendors selling compliant bags.

• Important Deadline: Central Market Tenderloin Payroll Expense Tax Exclusion Due 11/1/13
Don’t forget the deadline to apply for or renew your participation in the Central Market Tenderloin Payroll Expense Tax Exclusion is November 1, 2013. The exclusion is available to qualified businesses in the Central Market and Tenderloin area. More information can be found at www.oewd.org/Central_Market_Tax_Credit.aspx

Jumpstart your prosperity at the following events!
- Registration is encouraged and open to all, visit www.eew.sfcenter.org for a full list
of events
- Register for the LGBT Career Fair at www.cf.sfcenter.org
- All events are free and open to all

• San Francisco Travel Creates New Partnership Structure
The San Francisco Travel Association, the official destination marketing organization for San Francisco, has completely redesigned its partnership structure. Member dues are now based on services used rather than business type. Tourism, San Francisco's largest industry, generates in excess of $8.9 billion annually for the local economy, and the organization hopes that the new structure will allow more small businesses to be a part of this multi-billion dollar industry. More details can be found at http://www.sanfrancisco.travel/partners/partner-packages.

• Office of Small Business Regular Office Hours
Services are available by appointment, phone and walk-in, Monday - Friday, 8AM-5PM. Click HERE for details.

• Small Business Financing Resources
Please click HERE for a list of nonprofit small business lenders.

• Small Business Resources & WorkshopsPlease click HERE for a list of small business resources and workshops.

• Authorizing the Office of Economic and Workforce Development to Identify and Recommend Small Businesses - Kiva Zip’s Microlending Platform. File No. 130888
Resolution authorizing the Office of Economic Workforce Development to identify and recommend small businesses on behalf of the City and County of San Francisco for participation in a Microlending Program operated by Kiva Microfunds, a California non-profit public benefit corporation.

Introduced by Supervisor Farrell on 10/07/13. Co-Sponsor Campos, Yee, Cohen and Chiu. Scheduled at the Board of Supervisors Budget and Finance Committee on October 9, 2013.

• Residential Properties File No. 130790
Ordinance amending the Business and Tax Regulations and Police Codes to change the limits of Parking Tax Occupancy Simplification for residential properties by increasing, from 5 to 10, the number of parking spaces residential buildings may rent to non-residents and increasing the gross revenue they may earn from rent from $4,000 to $12,000 per quarter and from $15,000 to $40,000 annually.

Introduced by Supervisor Wiener on 7/30/13; Co-Sponsors are Supervisor Tang and Wiener. Hearing date at the Small Business Commission is Oct 7, 2013. Scheduled at the Board of Supervisors Budget and Finance Committee.

The Family Friendly Workplace Ordinance applies to businesses with 20 or more employees. The key provision of the ordinance provides employees with the right to request a flexible or predictable working arrangement in writing to assist with care giving responsibilities, and to do so without adverse employment actions or interference of the right. The employer has a right to deny a request based on business reasons and must do so in writing. The ordinance requires the employer to post a notice informing employees of their rights and to maintain records regarding compliance of the Ordinance. The Office of Labor Standards Enforcement (OLSE) is authorized to enforce the ordinance as to an employer’s adherence to the procedural, posting, documentation requirements as well as any retaliation action taken against the employee for exercising their right to ask. OLSE and Commission on the Status of Women are required to do outreach and education.

Supervisors Cohen, Mar, Campos, Yee, Breed, Avalos and Kim are co-sponsors and it is assigned to the Board of Supervisors Rules Committee. Supervisor Chiu has reintroduced the Family Friendly Workplace Ordinance as legislation on 7/30/13. It will not be placed on the November ballot.

This Ordinance will amend the Business and Tax Regulations Code. The key points of this ordinance are:

1. Change payments to monthly installment payments rather than prepayments of hotel and parking taxes. Payroll tax will still be in installments through 2017.
2. Eliminates the requirement for annual parking tax bond renewal.
3. Tightens up communication procedures and obligation between Treasurer and Tax Collector and a business/person regarding recomputation, interest, deficiency determinations, and revocation determinations.
4. Interest applies to unpaid penalties but not unpaid fees and interest.
5. A penalty is applied when no tax is file and the Treasurer and Tax Collector determines the tax exceeds $5000.
6. There are penalties for failure to register or update a registration, making misstatements in registration, failure to allow inspection of or to produce records, and failure to file a return.
7. Registration is revocation removing suspending registration.
8. Business Registration provisions to require a copy of the business registration certificate rather than a business tax registration tag be displayed on company vehicles.
9. The Revenue Control Equipment Compliance Fee is due on December 31.
10. Central Market Payroll Tax Exclusion annual affidavit to OEWD by December 31.

Introduced by Supervisor Chiu 7/30/13. Small Business Commission vote 5-0 to recommend approval on September 9, 2013

This ordinance will amend the Administrative Code Special Tax Financing Law to authorize financing by special tax districts of work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations, and establish certain procedures by which the City can make changes to a special tax district.

Introduced by the Mayor on 7/30/13; Co-Sponsors are Supervisor Tang and Wiener. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Budget and Finance Committee.
Sponsors: Mayor; Tang and Wiener

• Third Street Formula Retail Restricted Use District File No. 130372
This legislation would require that any new formula retail use on Third Street between Williams Avenue and Egbert Avenue seek conditional use authorization to operate. If any existing formula retail use has not already procured a conditional use permit to operate as a formula retail use, any alteration permits for a new formula retail use would require conditional use authorization. Any expansion or intensification of an existing formula retail use would also require conditional use authorization.

Introduced by Supervisor Cohen. The Small Business Commission vote 7-0 to recommend approval on June 10, 2013. The Planning Commission recommended approval with modifications proposed by the Planning Department staff. The ordinance is still in Board of Supervisors Land Use and Economic Development Committee.

• Licensing and Regulation of Massage Establishments and Practitioners File No. 130789
This ordinance amends the Health Code to require massage practitioners licensed by San
Francisco to wear photo identification cards when working; deny Massage Establishment permits to applicants convicted of specified crimes; provides an appeal process for persons denied a Massage Establishment permit; establishes health and safety requirements for all Massage Establishments; to establish penalties for violations governing Massage Practitioners and Massage Establishments; and to require notice of violations be sent to the owner(s) of property where Massage Establishments are located.

Introduced by Supervisor Tang on 7/30/13, co-sponsored by Supervisor Chiu. Small Business Commission vote 5-0 to recommend approval on September 9, 2013. Scheduled at the Board of Supervisors Rules Committee, October 3, 2013.

• Massage Practitioners File No. 130400
Under current City code, all massage practitioners are required to obtain local permits from the Department of Public Health. This is not consistent with state law passed in 2011 which created an optional state licensing program for massage practitioners and exempts state licensed practitioners from local permitting. Under this proposed law, an individual who is certified as a massage practitioner by the State of California pursuant to the California Business and Professions Code is not required to obtain a permit from the Department. However, any practitioner who is not certified by the State must still obtain a permit from the Department. Massage establishments that employ only massage practitioners who are certified by the state must provide copies of those certificates to the Health Department for all massage practitioners employed by the establishment, and must update this information annually. The ordinance set out additional criteria including a requirement to maintain a current business registration.

Introduced by the Department of Public Health. The Small Business Commission vote 7-0 to recommend approval on June 10, 2013. Scheduled at the Board of Supervisors Rules Committee, October 3, 2013.

• Safe Body Art File No. 130402
This proposed ordinance, which amends the San Francisco Health Code, conforms to the new state law, the California Safe Body Art Act (AB 300) that became effective July 1, 2012, and set statewide health and safety standards for practitioners of piercing, tattooing, branding and the application of permanent cosmetics. The annual license fee for a body art facility is proposed to be $1,372 per year, the annual license fee for a body art practitioner is proposed to be $175.

Introduced by the Department of Public Health. The Small Business Commission vote 7-0 to recommend approval on June 10, 2013. Scheduled at the Board of Supervisors Rules Committee, October 3, 2013.

• October Small Business Commission (SBC) Meetings: 10/7, 5:30pm, Room 400; 10/28, 2:00pm, Room 400The Small Business Commission will meet on Monday, October 7 at 5:30PM in Room 400. The Commission meets again on Monday, October 28 at 2:00PM in Room 400. Agendas will be available on the Commission website by the Wednesday prior to the meeting.

• Small Business Commissioners and Staff Attend Council of District Merchants Associations Fall Mixer
Small Business Commission President Steve Adams and Commissioner Mark Dwight, along with Office of Small Business Executive Director Regina Dick-Endrizzi and staff member Christian Murdock, attended the San Francisco Council of District Merchants Associations (SFCDMA) Fall Mixer on September 10. The event, held at Anchor Brewing Company’s factory in the Dogpatch, brought together dozens of small business owners in an informal setting to discuss small business matters.

Commissioners and staff were able to introduce themselves to new SFCDMA members and expand relationships with existing members, in the process explaining the work of the Small Business Commission and Office of Small Business. Board of Supervisors President David Chiu made a special appearance, outlining his efforts to enhance the small business climate in the city.

• Shop Small Campaign Launches in San Francisco
The City and County of San Francisco is proud to support the "Shop Small San Francisco - Everyday By The Bay" campaign through the Office of Small Business. This new initiative grew out of the national Small Business Saturday effort, which promotes shopping small not only on Small Business Saturday every year, but also advocates shopping at small businesses the other 364 days of the year.

San Francisco is fortunate to be selected as a city to kick off this national campaign and the energy around this pilot is huge! The Office of Small Business and the San Francisco Council of District Merchants are supporting the campaign, which starts in early October, culminates on Small Business Saturday on November 30, 2013, and wraps up on January 1, 2014.

Small Business Saturday was created by American Express to help small businesses do more business. It’s a day celebrated each year on the Saturday after Thanksgiving to drive support for small businesses like those throughout San Francisco. This year, Small Business Saturday is on November 30. Now in addition to Small Business Saturday, American Express has generously stepped up to the plate and will be supporting the Shop Small San Francisco campaign. Shop Small will include lamp post banners across the city that say "Support Local Business Everyday By the Bay". Starting in the middle of October, business owners will be able to visit www.ShopSmall.com to receive special opportunities to get their businesses ready for Small Business Saturday and the coming holiday shopping season. Neighborhood associations that are interested in participating in Small Business Saturday are encouraged to reach out to Lynn Bunim at the Small Business Saturday Coalition at Lbunim@wipp.org. We hope you will join in supporting the effort and in making Shop Small San Francisco a national model for all small businesses.

Legislation Enacted:

• Administrative Code - Healthy Food Retailer Incentives Program File No: 120966. Signed by the Mayor September 9, 2013
The Office of Economic and Workforce Development will coordinate and centralize City government incentives and technical assistance to promote the establishment and expansion of Healthy Food Retailers in areas that lack access to healthy food.

*Please contact the Small Business Commission by email at sbac@sfgov.org, or by phone at 415.554.6134 with questions, comments, or feedback regarding legislations and how they affect your small business.

• DPW Contracting OpportunitiesThe Department of Public Works (DPW) announced the launch of a one-stop shop on its website that will make it easier for contractors to search for contracts, bid on projects, find project information, access documentation and track their payments for DPW’s construction projects and professional services. Please click here for details.

• SFO Concessions and LeasesBelow is the San Francisco International Airport’s list of upcoming contracts and concession leases for the fiscal year 2012-2013 (July 1, 2012-June 30, 2013). These contracts and leases will be advertised on the Airport’s and City & County of San Francisco’s Office of Contract Administration’s websites:

• Learn Everything You Need to Know About Contracting with the City and County of San Francisco (FREE WORKSHOP SERIES)
FREE workshops held EACH WEDNESDAY of the month at 30 Van Ness Avenue, Suite 200. Reservations are not required, but highly recommended. Click here for details.

• City and County of San Francisco Contracting OpportunitiesVisit www.sfgov.org/oca and click on Bids and Contracts Database and Required Vendor Forms. Click here to learn how to become a registered vendor and certified Local Business Enterprise.

• TUE. 10/8 - What's it all worth? Access to Capital: Valuation 101You've spent years building your business. Now how do you determine how much it is worth? Join us for Access to Capital: Valuation 101 to learn what valuation is all about and how it's calculated. Whether you're thinking about your exit strategy, employee ownership or are simply curious to find out what your business is worth, you'll leave the session with the tools you need to properly value the business you've built.
Tuesday, October 8th
5:30pm-7:30pm
Hanson Bridgett - 425 Market Street, 26th FloorClick here to register.

• WED. 10/9 - Salinas Small Business Expo and Matchmaking Fair
California Public Utilities Commission presents Small Biz Expo and Matchmaking Fair! Free event features presentations by government agencies and utilities and matchmaking opportunities with Procurement Specialists (one-on-one scheduled meetings).

- California and its utilities want your business.
- Meet with local and state agencies and utilities like PG&E, AT&T, Verizon, Comcast, Water and more.
- Learn how to get contracts and sell goods and services!

For those participating in the matchmaking fair, we encourage you to register in advance.
To register, go to registration link: https://ia.cpuc.ca.gov/smbiz
For more information or questions, please contact smallbiz@cpuc.ca.gov or (800) 253-0500

• WED. 10/23 - Soft Story Financing Workshop
A Soft Story Financing Workshop will be held on Wednesday, October 23 from 6-8 PM at Fort Mason to help property owners understand how they can pay for improvements required by the Mandatory Soft Story Retrofit Ordinance. While property owners will soon receive a notice specifying their individual deadlines for compliance, which range from four to seven years from now, it is never too early to start thinking about financing options.

The Soft Story Financing Workshop is co-hosted by the City’s Earthquake Safety Implementation Program (ESIP) as well as the San Francisco Apartment Association (SFAA). Several private lenders will attend, and there will also be information on the City’s financing option.

• SAT. 11/2 - The Triumphs and Trials of Women-Owned Small Businesses- A Panel DiscussionJoin San Francisco Federal Credit Union's Women's Wealth Initiative for a candid discussion exploring the unique experience of owning a small business in the Bay Area. Our diverse, all-female panel will share their personal stories of business ownership in fields ranging from baking to financial planning to holistic healing.

We'll kick off the event with our panel discussion, followed by a question-and-answer session. Attendees will then have the opportunity to network while enjoying refreshments provided by San Francisco Federal Credit Union. Bring your business cards!